Payers want to control when and how they pay. Payees and billers want payment certainty, to control how they are paid and to what account. Request to Pay (R2P) is the missing link in the chain for opening up real-time payments. Along with initiatives like ISO 20022, it can reduce processing-related and follow-up costs, and seamlessly link payment requests to current and future payment flows.

What is R2P?

Iterations of R2P have been developed over the past decade. But because they used a closed loop infrastructure, reach was limited. Today’s R2P options have evolved.

While not a payment scheme, it is a dedicated R2P processing scheme for various service models, different markets and use cases. The R2P process enables an automated reconciliation between an invoice and the actual payment(s). Each R2P transaction has the capability to include details from the payee to a payer, which may include payment amount, purpose, destination account, timing, a unique reference field and a link to an invoice.

The flow of a typical R2P transaction might look like this:

Step 1: An R2P is initiated from payee to payer related to a business interaction and sent over the inter- R2P service providers’ network.

Step 2: R2P is presented to the payer showing amount/ currency, purpose/description and payee info. Rich payment information is shared.

Step 3: The payer will approve or decline the request; the payee is automatically notified.

Step 4: If the R2P is approved, the payer’s bank is instructed to initiate/execute the payment.

How is R2P used?

Typical use for R2P cases includes bill payment, invoice payment, ecommerce, payment at point of sale and installments. Real-time payments are driving the new wave of R2P services, but it can also be applied to payment types including direct debits, ACH and card payments.

Read this infographic to learn more about what’s driving R2P uptake and to see details surrounding popular R2P use cases.